DEPUTY AFFIDAVIT COMMISSIONER HALLSTROM - … · 2017-06-22 · Hallstrom Affidavit Page 1 of 16...

Hallstrom Affidavit of 16

Filed in Second Judicial District Court6/22/2017 1:36 PM

Ramsey County, MN

62-CV-17-360162-CV-17-3601

STATE OF MINNESOTA

COUNTY OF RAMSEY

The Ninetieth Minnesota State Senate and the Ninetieth Minnesota State House of Representatives,

Plaintiffs,

V.

Mark B. Dayton, in his official capacity as

Governor of the State of Minnesota, and Myron Frans, in his official capacity as

Commissioner of the Minnesota Department of Management and Budget,

Defendants.

STATE OF MINNESOTA ) ) ss.

COUNTY OF RAMSEY )

Filed in Second Judicial District Court 6/22/2017 1:36 PM

Ramsey County, MN

DISTRICT COURT

SECOND JUDICIAL DISTRICT CASE TYPE: OTHER CIVIL

Coun File No.2 62-CV-17-3 601

Judge John H. Guthmann

AFFIDAVIT OF DEPUTY COMMISSIONER ERIC

HALLSTROM

ERIC HALLSTROM, being first duly sworn, deposes and states as follows:

1. My name is Eric Hallstrom. I am the Deputy Commissioner for the Minnesota Department of

Management and Budget (“MMB”) and I have held this position since March 2015. As Deputy

Commissioner, my responsibilities include oversight of MMB’S internal and entelprise activities,

including those of the Budget, Accounting, and Debt Management Divisions. I also have

responsibility for overseeing MMB’S continuity planning activities, which include preparing for

and managing statewide shutdown operations in the event of a lapse in appropriations. As a result

of these responsibilities, 1 am able to speak to the authenticity of the attached exhibits and have

knowledge of the facts contained in this Affidavit.

2. Attached as Exhibit A is a document entitled “Recommended Statewide Objectives” that was

submitted to the Ramsey County District Court in anticipation of the State government shutdown

in 2011. With a few modifications, the Court agreed that the functions listed in Exhibit A

1

Hallstrom Affidavit Page 1 of 16



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constituted critical core functions of the Executive branch, and ordered that these functions

continue despite the absence of an appropriation.

. In my capacity as Deputy Commissioner, 1 have access to records of MMB, which are public data,

that concern the funds appropriated to the Senate and House of Representatives through June 30,

2017; the reserves held by the Senate and House from unspent prior years’ appropriations; and the

budgeted costs of operation for the Senate in Fiscal Years (“FY”) 2016—17.

. Historically, the Senate and House appropriations have been part of the Omnibus State

Govemment Appropriations bill. For at least the last several biennia, the Senate and House have

not submitted an itemized breakdown of their general fund appropriation request, but simply

provide the lump sum to be appropriated to each of the bodies from the State’s general fund.

Neither body presented the itemized details underlying their operating budget to the Executive

branch in the appropriations process during the 2017 regular or special legislative sessions. As a

result, MMB is not generally in possession of the Legislature’s budget details and the Legislature

has not provided MMB with detail suppofiing its FY 2018-2019 budget.

. Attached as Exhibit B is a document entitled, “Minnesota Senate Budget FY 2016-17” that was

provided to MMB in connection with the financing of the construction of the new Senate Office

Building.

Unlike the other branches of government, at the end of the biennium, the Legislature is authorized

by Minnesota Statutes § 16A.281 to carry over any unspent general fund appropriations into an

account, called a “carry forward” account, that can be used for future spending “to pay expenses

associated with sessions, interim activities, public hearings, or other public outreach efforts and

related activities”.

. Attached as Exhibit C are reports entitled “Allotments Within Appropriation Report” as of June

21, 2017, which show the amounts currently held in the carry forward account and the amounts




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62-CV-17-360162'Cv'17'3601 Filed in Second Judicial District Court

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currently unspent from the general fund appropriation for FY 2017. The repons show the amounts

in the “Senate Carryforward” account were $2,931,270 and $8,330,624 in the “House Carry

Forward” account.

Any amounts from the FY 2017 general fund appropriations that are unspent will be carried over

into the respective can‘y forward accounts. Exhibit C shows that as of June 21, 2017, the House

had an unspent amount of $4,858,908 in its FY 2017 general fund appropriation account, and the

Senate had an unspent amount of $5,063,366 in its FY 2017 general fund appropriation account.

The House and Senate may make additional expenditures from their FY 2017 general fund

appropriation accounts prior to July 1, 2017. For instance, it is anticipated that the Senate will use

$683,954 of its FY 2017 general fund appropriation to pay the June 2017 lease payment the Senate

owes to the Minnesota Department of Administration for the Senate Office Building and parking

garage.

MMB has the statutory duty to “keep the state’s general account books according to generally

accepted government accounting principles.” Minn. Stat. § 16A.055, subd. 1(3). Attached as

Exhibit D is a spreadsheet prepared from the data in MMB’S accounting system that shows general

fund expenditures by month for the Senate and House for FY2017, and the caITy forward and

FY2017 general fund balances as of June 21, 2017.

FURTHER YOUR AFFIANT SAITH NOT. 2 [Efic HALLSTROM

Subscribed and sworn to before me thisfi a day of June 2017.

/, 3161\q mbkcmg LYNDA M HANLV J No1avy Publlc

Stone 0! Minnesota My Commlsslon Explves

January 31. 20203


Hallstrom Exhibit A



Ramsey County, MN

62-CV-17-3601elm/413601 Filed in Second Judicial District Court

6/22/2017 1:36 PM Ramsey County, MN

Hallstrom Exhibit A


ObjectivesRecommended Statewide 2011 Potential Minnesota government Shutdown

Prepared by the Statewide Contingency Response Team Commissioner of MMB Jim sihowalter, Chair

June 15,2011

Planning AssumptionsI.

• Agencies should plan to continue only priority one and two critical services;• Agencies should plain minimal/neccssary staffing levels for the priority one and two

critical services.• Agencies should include in their planning; personnel, resources (financial and others)

and those support sei vices that are both directly related to, and absolutely necessary to continue priority one and priority two critical services;

II. Statewide Priority Service Objectives

The State’s Statewide Contingency Response Team (SCRT) has established five statewide objectives that must be met during a government shutdown. In order, they are:

A. provision of basic custodial care for residents of state correctional facilities, regional treatment centers, nursing homes, veterans’ homes, and residential academies and other state operated services;

B. maintenance of public safety and immediate public health concerns;C. provision of benefit payments to individuals;D. preservation of the essential elements of the financial system of the government; andE. provision of necessary administrative and support services for the above goals.

III. Priority Service Definitions and Categories

In addition, the SCRT h^s established four statewide priority service definitions to meet the aforementioned objectives. All agencies must assign their services to the following four priority levels:

A. Priority 1 Critical Services(Immediate threat to public health aud/or safety)

Services with critical/core activities that must remain uninterrupted. Generally, these would include agencies and facilities that operate 24-hours a day.

EXHIBIT

A



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62-CV-17-3601

Categories:

1.0 Providing for s^cun ty;1.1 Medical care of inpatients and emergency outpatient care;1.2 Activities essential to ensure continued public health and safety, including safe

use of food, drugs, and hazardous materials;1.3 Continuance of transportation safety functions and the protection of transport

property;1.4 Protection of lands, buildings, waterways, equipment and other property owned

by the government;1.5 Care of prisoners and other persons in the custody of government;1.6 Law enforcement and criminal investigations;1.7 Emergency and disaster response or assistance;1.8 Activities that ensure the production of power and the maintenance of the power

distribution system;1.9 A process for maintaining communication with agency personnel and the SCRT 2.0 Support/Administrative services to support the Priority 1 Critical Service.

B. Priority 2 Critical Services(Disorder or a severe, statewide economic impact may develop if not delivered in a few days)

Services with criticalj'core activities that have a recovery time of 25 hours to five days that can be disrupted temporarily or might be periodic in nature, but must be reestablished within a few days.

Categories:

2.0 Activities essential to the preservation of the essential elements of the financial system of the government, including the borrowing and tax collection activities of the government and systems to support these activities;

2.1 Contract performance where a suspension or termination could be regarded a material default, and that could result in substantial money damages against the state, and there is no dependency on substantial support from state resources that are not funded ("substantial" means something more than merely cutting a check for payment, but rather entail the need for continued full time activity on the part of three or more full time employees);

2.2 Activities having a severe and permanent negative financial impact to business or vulnerable populations or groups of individuals within Minnesota.

2.3 Support/Administrative services to support the Priority 2 Critical Service.



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62-CV-17-3601

\\

C. Priority 3 Critical Sjervices(Services required by law or rule that can be suspended by law or rule during an emergency)

Activities with a recovery time objective of six days to 30 days that can be disrupted temporarily but must be re-established sometime before the emergency or disruptive event is over (<6 weeks).

D. Priority 4 Critical Services(Services that could be suspended during an emergency and are not required by law or rule)

Activities with a recovery time objective of 30+ days which can be deferred for the duration of a long-term event (6-8 weeks).

:*

]



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Hallstrom Exhibit B



Ramsey County, MN



Hallstrom Exhibit B


MINNESOTA SENATE BUDGET FY 2016-17

FY 2016 Budget FY 2017 Budget Proposed

FY 2016-17 Budget ProposedLine Item Proposed

1 Salaries24,877,937

850,0004,246,940

29,974,877

Permanent Salaries Temporary Salaries Senators Payroll

5 Subtotal, Salaries

12,679,372550,000

2,123,47015,352,842

12,198,565300,000

2,123,47014,622,035

234

67 Benefits

705,00010,000

6,574,5581,854,9751,922,134

450,42640,00040,000

11,597,093

8 DCP MatchChild Care/Med-Dent Admin Fee InsuranceMSRS Employers Share FICA Employers Share

13 Medicare Employers ShareUnemployment Compensation Workers Compensation

16 Subtotal, Benefits

528,7505,000

3,287,279913,781946,864221,885

20,00020,000

5,943,559

176,2505,000

3,287,279941,194975,270228,541

20,00020,000

5,653,534

9101112

1415

17IS Services/Expenses

RentalsRepairs State of MinnRepairs Outside VendorMaintenance AgreementPrintingRental-CopiersMicrographicsChaplainsAudit

16,0005,0005,000

616,81584,00019,200

19 8,0002,5002,500

303,85042,0009,600

8,0002,5002,500

312,96542,0009,600

2021222324

500 1,000500253,000

25,00050,000

374,000285,000

1,000200,000418,000

2,000480,000800,000

1,350,0003,000

220,00030,000

150,000200,000

10,00055,000

5,0004,000

40,00058,00016,000

150,00030,00030,00010,000

1,50025,00025,000

184,000140,000

1,50026027

Development IMB SoftwareComputer Development Dry Cleaning Postage/Meter Stamps Communication Delivery Service MileageHousing In-State Session Per Diem In-State Session Per Diem Out-State Interim Per Diem In-State Interim Per Diem Out-State Travel In-State Travel Out-State Registration Fee In-State Registration Fee Out-State Fees/Notary/Summons/Admissions Membership Fees Tuitions/Training Video/Media Photographic Office Supplies Publications Water Coolers Furniture/Equipment Construction Projects Misc

56 Subtotal, Services/Expenses

28 25,000190,000145,000

2930

500 50031100,000 206,000

1,000 ' 240,000 400,000 575,000

1.500 100,00015,00075,000

100,0005,000

27,5002.500 2,000

20,00058,000

8,00075,00015,00015,0005,000

100,000212,000

1,000240,000400,000775,000

1.500 120,000

15,00075,000

100,0005,000

27,5002.500 2,000

20,000

32333435363738394041424344454647

0488,000

75,00015,00015,0005,000

4950515253

0005429,910

5,775,92514,646

2,806,09615,264

2,969,82955

5747,347,89523,371,690 23,976,20558 TOTAL OPERATING

5960 Senate Building

Debt Service Maintenance

63 Total, Senate Building

9,587,5003,312,605

12,900,105

3,502,5001,087,8104,590,310

6,085,0002.224.7958.309.795

6162

6460,248,00065 GRAND TOTAL (Operating & Building) 27,962,000 32,286,000

6660,248,00032,286,00027,962,00067 Total Appropriation

68 Difference: AppropMinusTotalSpending 0 00



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Hallstrom Exhibit C



Ramsey County, MN



Hallstrom Exhibit C


Run DateTime: 6/21/2017 4:09 PM Source Report #: KK001 As of Date: 06/21/2017

ALLOTMENTS WITHIN APPROPRIATION REPORT

Selection Criteria: Budget Period - 2017, Fund - 1000 to 1000, Agency - L12, AppropID - L121000 to L121001 AGENCY: L12 House of Representatives

Budget Period: 2017 Fund: 1000General

DeptID: L1210000House of Representatives

AppropID: L121000House OfRepresentatives

AppropID Slinrl PoserHouse

Annroo Tvnt- Bud Aiith Oot Ir-pal Cilalinn15 077 01 002

Bud ProgramL1010

Budget StainsOpen

Bud Activity05 A L101010

003

Appropriations Receipts Roll Forward TransfersOriginal Current Cancel Reduction Other Classes

32,383,00032,383,000

Original Estimate Current Estimate Collected Variance Est-Col Dedicated Cap

0 Roll Forward In Roll Forward Out

Anticipated In Actual In Anticipated Out Actual Out

1,958,226 00 0 0

0 0 00 0 00 0

Allotment-FreeUncommittedUnexpended

1,958,2264,858,9084,858,908

Budgeted34,341,22634,341,22634,341,226

Remaining4,858,9084,858,9084,858,908

Budget/Encumbrance Authority Spending Authority Transfer Authority___________

ALLOTMENT BALANCES

AccountGroup

NONPAY

Ere: Encumbered/Allotment Dentil) and Descr L 1220000-House OfRepresentatives

Budget32,383,000

Expended29,482,318

Unobligated2,900,682

Unexpended2,900,682

Encumbered Com mined0 o

32,383,000 0 0 29,482,318 2,900,682 2,900,682

Totals hv Account CronnPayroll Allotments Non-Payroll Allotments

PAYRLLNONPAY

0 0 0 0 0 032,383,000 0 0 29,482,318 2,900,682 2,900,682

1 of 2



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Selection Criteria: Budget Period - 2017, Fund - 1000 to 1000, Agency - L12, AppropID - L121000 to L121001 AGENCY: L12 House of Representatives

Budget Period: AppropID: L121001House Cany Forward

2017 Fund: 1000General

DeptID: L1210000House of Representatives

Annronll) Shorl PcscrHouse Cf

Apnrnp Tyne Bud Auth Ont 1 .i‘pnl CitationMS 16A.281

Boil I'ropramL1010

Bud ActivityL101010

Bndyct StatusOpen03 A

Roll Forward TransfersReceiptsAppro printionsOriginal Current Cancel Reduction Other Classes

0 Original Estimate Cuuent Estimate Collected Variance Est-Col Dedicated Cap

0 Roll Forward In Roll Forward Out

8,330,624 Anticipated In Actual In Anticipated Out Actual Out

00 0 0 0

00 00 0 00 0

8,330,6248,330,6248,330,624


Budgeted8.330.6248.330.624 8,330,624

Remaining8,330,6248.330.6248.330.624


ALLOTMENT BALANCES

Aeeniint Encumbered/Committed

Pre-Allotment Dentil) and Pcscr UnobligatedBudget Expended LncxnendcdGroup Encumbered

0 0 0 0 0 00 0 0 0 0 0

Payroll Allotments Non-Payroll Allotments

PAYRLLNONPAY

0 0 0 0 0 00 0 0 0 0 0

2 of 2



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Selection Criteria: Budget Period-2017, Fund- 1000 to 1000, Agency-Lll,AppropID-L111000toL111001 AGENCY: Lll Senate

Budget Period: 2017 Fund: 1000General

DeptID: LI 110000Senate

AppropID: LI 11000 Senate

AnnronID Short PoserSenate

Approp Type Bud Aulh Opt Legal Citation15 077 01 002

Bud ProgramLI 020

Bud Atliyjl*L102020

Budget SiamOpen05 A

002

Annronrialinns Receipts Roll Forward TransfersOriginal Current Cancel Reduction Other Classes

32,286,00032,286,000


Roll Forward In Roll Forward Out

0 Anticipated In Actual In Anticipated Out Actual Out

1,578,346 00 0 0

0 0 00 0 00 0


1,578,3465,063,3665,063,366

Budgeted33,864,34633.864.34633.864.346

Remaining5,063,3665,063,3665,063,366

Budget/Encumbrance Authority Spending Authority Transfer Authority______

ALLOTMENT BA LA NCI'S

AccountGroup

NONPAY

Encumbered/Committed

Pre-Allotment Dentin and DrxcrLI 120000-Senate

Budget32,286,000

Expended28,800,980


liuMDcndtd3,485,020

Encumbered0 0

32,286,000 0 0 28,800,980 3,485,020 3,485,020

Totals by Account GroupPayroll Allotments Non-Payroll Allotments

PAYRLL NONPAY 32,286,000

0 0 0 0 0 00 0 28,800,980 3,485,020 3,485,020

1 of 2



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Selection Criteria: Budget Period-2017, Fund- 1000 to 1000, Agency - Lll, AppropID - LlllOOOtoLlllOOl AGENCY: Lll Senate

Budget Period: AppropID: LI 11001Senate Carryforward

2017 Fund: 1000General

DeptID: L1110000Senate

Annronll) Short DcscrSenate Cf

Uml Autli Opt l.cpal CitationMS 16A.281

Bud ActivityLI02020

Hudprt StatusOpen

Annron Tvnc Bud ProgramLI 02003 A

Receipts T ransfe.rsAppropriations Roll ForwardOriginal Current Cancel Reduction Other Classes


Roll Forward In Roll Forward Out

Anticipated In Actual In Anticipated Out Actual Out

00 0 3,711,773000 000 000 0

0 0

0Allotment-FreeUncommittedUnexpended

Budgeted3,711,7733,711,7733,711,773

Remaining2,931,2702,931,2702,931,270

2,931,2702,931,270


ALLOTMENT BALANCES

AccountGroun

NONPAY

Pre- Encnnihercd/Allotment Dentil) and DrsrrLI 120000-Senate

Budget3,711,773

Ex pended 780,503


Unexpended2,931,270

Encumbered Committed0 0

3,711,773 0 0 780,503 2,931,270 2,931,270

Totals by ActatiiU.GniucPayroll Allotments Non-Payroll Allotments

PAYRLLNONPAY

0 0 0 0 0 03,711,773 0 0 780,503 2,931,270 2,931,270

2 of 2



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Hallstrom Exhibit D



Ramsey County, MN



Hallstrom Exhibit D


General Fund Appropriations Expenditures by MonthFY17

July September October November December FebruaryYTD August YTD YTD YTD YTD YTD January YTD YTD

$2,517,606 $13,364,968 $2,517,367 $15,882,335 $3,003,604 $13,885,939$1,431,421 $1,431,421 $2,248,386 $3,679,807 $2,398,507 $6,078,314 $2,293,199 $8,371,513 $2,475,849 $10,847,362House

$2,659,769 $14,189,259 $2,518,800 $16,708,059 $2^09,611 $19,217,670$2,714,060 $2,714,060 $2,172,186 $4,836,246 $2,106,019 $6,992,265 $2,124,986 $9,117,251 $2,412,239 $11,529,490Senate

General Fund Appropriations Expenditures by Month FY17 Monthly

Average as of 5/31/17

Carry-Forward Balance

as of 6/21/17as of 6/21/17

March YTD April YTD BalanceMa< YTD June YTD

$2,979,043 $21,864,982 $3,100,404 $24,965,386 $2,855,693 $27,821,079 $1,661,239 $29,482,318 $4,858,908 $2,529,189 $8,330,624House

$2,219,871 $21,437,541 $2,606,796 $24,044,337 $2,944,143 $26,988,480 $1,812,500 $28,800,980 $5,063,366Senate $2,453,498 $2,931,270



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